You are here: Home » International » News » Economy
Business Standard

War in Ukraine to curb trade and economic growth this year, says WTO

The WTO said its projections for world trade take into account factors like the impact of the war, sanctions on Russia and shrinking worldwide demand amid lower business and consumer confidence

Topics
World Trade organisation | Russia Ukraine Conflict | economic growth

AP | PTI  |  Geneva 

World Economy
The trade body also projects that global gross domestic product at market exchange rates will grow by 2.8 per cent this year

The predicted on Tuesday that trade in goods will grow much less than previously expected this year, saying prospects for the global have darkened since the onset of Russia's war in Ukraine.

In the latest grim economic outlook to emerge, the Geneva-based trade body pointed to multiple uncertainties in its forecast over the next two years because Russian and Ukrainian exports of items like food, oil and fertilizers are under threat from the war. It also cited the lingering impact of the COVID-19 pandemic notably from lockdowns in China.

It's now clear that the double whammy of the pandemic and the war has disrupted supply chains, increased inflationary pressures and lowered expectations for output and trade growth, WTO Director-General Ngozi Okonjo-Iweala told reporters.

The WTO said its projections for world trade take into account factors like the impact of the war, sanctions on Russia and shrinking worldwide demand amid lower business and consumer confidence.

It said world merchandise trade volume is expected to grow 3 per cent this year, down from a forecast of 4.7 per cent before the war began. For 2023, it's expected to increase 3.4 per cent

The trade body also projects that global gross domestic product at market exchange rates will grow by 2.8 per cent this year, down from the 4.1 per cent previously anticipated.

Okonjo-Iweala said the war has caused immense human suffering in Ukraine and its effect has rippled around the world, notably in poorer countries, adding: A potential food crisis is looming."

She said high fuel prices and expensive fertilizer pose a threat to future crop yields, and the war has further strained global supply chains already under pressure.

The WTO is part of a steering committee set up by UN Secretary-General Antonio Guterres to look into the possible food crisis.

The panel has discussed, among other things, whether countries with additional buffer stocks of grain could release some supply into markets, Okonjo-Iweala said.

She expressed hopes for a humanitarian cover to ensure that the harvest of 80 per cent of Ukraine's winter wheat in July can go forward, and that wheat can be planted in the country in September.

The WTO outlook follows a similarly downbeat forecast from the World Bank.

The Washington-based lender said in a report Sunday that the war in Ukraine is set to inflict twice the amount of economic damage across Europe and Central Asia that the COVID-19 pandemic did.

It also said Ukraine's will shrink by 45.1 per cent this year. Besides Ukraine, the report focused on central and Eastern Europe, former Soviet republics, the Balkan countries and Turkey.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, April 12 2022. 23:18 IST
RECOMMENDED FOR YOU
.